Market Microstructure

This lesson is about market microstructure, specifically about limit orders versus market orders, and their impact on market movement. The lesson emphasizes that liquidity conditions can and do change, and that different order types can impact or influence liquidity. The lesson also covers the impact of large bids and offers on market movement, and how market makers provide liquidity by posting limit orders. The lesson concludes by cautioning that attempting to day trade using order flow may result in getting “wrecked.”